The President of the United States, Donald Trump, issued a harsh criticism of the multinational Walmart this Saturday, after the department store chain announced an imminent price increase on its products, attributed to the tariffs imposed by the Republican leader on Chinese imports.
In a post on his social media platform Truth Social, Trump openly rejected Walmart's decision and accused the company of using tariffs as an "excuse" to justify price increases.
"Walmart should STOP blaming tariffs as the reason for the price increases across the board," wrote the president.
He then added that “Walmart made BILLIONS OF DOLLARS last year, much more than expected."
"Between Walmart and China, they should, as they say, 'EAT THE TARIFFS' and not pass ANY charges onto their valuable customers. I will be watching, and so will their customers!”, concluded the leader in a clearly challenging tone.
Walmart's position
Trump's comment comes after statements made by Walmart's CEO, Douglas McMillon, who warned that the company is facing increasing difficulties due to the high tariffs still in place on products imported from China.
Although a partial reduction was recently achieved—from 145% to 30%—in some categories, for Walmart, the relief has proven insufficient.
"We do everything possible to keep prices low," McMillon assured this Thursday during a public address.
However, he acknowledged that the company's room for maneuver is limited.
"We cannot absorb all the pressure due to the narrow profit margins in retail," lamented the executive.
The American retail giant, with hundreds of locations across the country and a strong online presence, has indicated that it will begin raising prices at the end of this month as an unavoidable measure to maintain operational sustainability in light of the additional tax burden imposed by tariffs.
Trump's stance fits into a narrative already familiar from his presidency: shifting the responsibility for the economic impact of tariffs onto large corporations or China, rather than acknowledging the internal effects of a prolonged trade war.
Precedents with Amazon
Walmart's case is not the first. Last April, the White House also publicly criticized Amazon after reports suggested that the company was considering passing on the cost of tariffs to consumers.
However, following the controversy, Amazon decided not to implement that increase, thus avoiding an open conflict with the government.
The controversy between the president and Walmart reignites the debate over who should bear the costs of tariff policies in a globalized context.
On one hand, companies argue that their margins are too tight to absorb the impact without passing it on to the consumer.
On the other hand, figures like Trump argue that corporate giants have enough financial capacity to do so.
Despite the uncertain outlook, Walmart is better positioned than many of its competitors.
Only 15% of its products come from China, while approximately 60% of its inventory consists of food, the majority of which is domestically sourced, reducing its direct exposure.
Frequently Asked Questions about the Conflict between Trump and Walmart over Tariffs
Why does Donald Trump criticize Walmart for raising prices?
Donald Trump criticizes Walmart because he believes the company uses tariffs as an "excuse" to raise prices, despite having made significant profits the previous year. The president suggests that both Walmart and China should absorb the cost of the tariffs instead of passing it on to consumers.
What is Walmart's position on tariffs and rising prices?
Walmart points out that it is inevitable to raise prices to maintain operational sustainability due to the high tariffs imposed by the Trump administration. Despite efforts to keep prices low, the company states that it cannot absorb all the pressure generated by the tariffs due to its limited profit margins.
How has Trump's tariff policy affected American companies?
Trump's tariff policy has created tensions between the government and large corporations like Walmart and Amazon. Companies are struggling to keep prices low due to the tariffs, and some have considered passing these costs on to consumers, which has led to criticism from the government and a debate over who should bear the costs of these policies.
What impact do tariffs have on the U.S. economy according to the Federal Reserve?
The Federal Reserve warned that tariffs could lead to slower economic growth and an increase in inflation in the United States. The Fed chairman, Jerome Powell, noted that tariffs could have lasting effects and increase economic uncertainty, complicating profit forecasts for businesses.
Filed under:
